scholarly journals Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

2020 ◽  
Vol 12 (8) ◽  
pp. 3205 ◽  
Author(s):  
Yu-Hui Wang
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Critical Factor ◽  
Positive Association ◽  
Theoretical Argument ◽  
Corporate Boards ◽  
Research Attention ◽  
Female Directors ◽  
Board Gender Diversity ◽  
The Impact

Gender diversity, one of the core streams of top management team (TMT) diversity research, poses a theoretical argument valuable for firms—whether gender diversity among board members can lead to improved performance. Increased research attention on the relationship between gender diversity and the financial and governance performance of firms has produced inconclusive results. This study shapes the gender diversity of corporate boards by defining six compounding elements, which is the major contributor to the literature of gender diversity. This study aims to provide a more complete and precise assessment of the impact of gender diversity on a firm’s performance and corporate governance performance from the Taiwanese experience. The evidence in Taiwan suggests that increased board gender diversity does not have a positive effect on financial and governance performance. Only the ratio of female independent directors is found to have a significantly positive association with a firm’s performance, supporting prior findings that directors with greater independence are better able to perform their monitoring function and thus contribute to performance. The results also demonstrate that female directors having concurrent posts is a critical factor in enhancing corporate governance performance. Female directors with prior experience as serving directors or supervisors in other companies can offer diverse opinions and network ties, thus contributing to improved cohesion and corporate governance. The findings of this research can contribute to both literature and practice in board gender diversity issues and can serve as an empirical basis for enterprises in optimizing their board composition.

Women on boards in India: a need or tokenism?

2018 ◽  
Vol 56 (8) ◽  
pp. 1769-1786 ◽  
Author(s):  
Varnita Srivastava ◽  
Niladri Das ◽  
Jamini Kanta Pattanayak
Keyword(s):  
Gender Diversity ◽  
Positive Association ◽  
Regulatory Reform ◽  
Corporate Boards ◽  
Content Type ◽  
Level Of Involvement ◽  
Female Directors ◽  
Women On Boards ◽  
The Right ◽  
The Impact

Purpose The purpose of this paper is to examine the significance of gender diversity on corporate boards in India in the light of recent regulatory reform introduced in the Companies’ Act, 2013 which mandated the presence of at least one woman on the corporate boards of all the listed firms. Design/methodology/approach Based on a panel of 300 firm-year observations for 15 years from 2001 to 2015, regression analysis has been conducted to analyze the relation between gender-related variables of corporate boards with firm-specific financial characteristic, cost of equity (COE) and return on assets (ROA) of firms listed in CNX Nifty, a major financial market index of India. Findings The analysis indicates that boards with gender diversity explain a slightly more than 5.5 percent change in a firm’s COE and have a much higher impact of 45 percent on a firm’s ROA. The presence of female directors on the boards and their independence have a negative association with the COE, whereas the level of involvement of female directors on different committees has a positive association with the ROA. Practical implications The findings may help theorists in defining the right mix of female on the corporate boards in an emerging economy. Also, by taking input from the findings, regulators and industry can formulate policies to foster gender diversity on corporate boards in India. Originality/value This study considers the recent regulatory norm introduced in India. This issue has still not been discussed and analyzed by researchers in India. It attempts to explain the impact a gender diverse board can make on a firm’s performance. It also makes valuable recommendations to improve the norms intended to more effectively foster gender diversity on corporate boards in India.

scholarly journals Gender Diversity in Corporate Boards: A Comparative Study of Pakistan and Norway

2021 ◽  
Vol 3 (1) ◽  
pp. 28-37
Author(s):  
Tayyaba Noor Asghar
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Legal Research ◽  
Secondary Sources ◽  
The Board Of Directors ◽  
And Performance ◽  
Board Gender Diversity ◽  
The Impact ◽  
Mixed Nature

With the increased attention given to corporate governance, there has been more focus on the lack of gender diversity in corporate boards. Within the context of corporate governance, this research focuses on the gender diversity in the boardrooms and to evaluate how the percentage of female directors on a company’s board affects the firm’s performance. For this purpose, Gender diversity in both Norway and in the Pakistan are studied, but this study more focuses on the Pakistan’s board gender diversity, legislations, implementation and its impact on company’s performance, this study also focuses on Norwegian experience and the impact of the Norwegian gender diversity rule. This study is conducted by a qualitative research and a socio-legal research methodology due to library based and its mixed nature of being legal and corporate respectively. This study is also based on primary as well as secondary sources. The results of this study show that there is observable performance benefit to adding more females to the board of directors. Companies found a significant and positive relationship between the percentage of women on the board and performance. These results suggest that if Pakistan decides to adopt strong legislation for corporations in relation to gender diversity and implement them; it will observe significant improvement in firm performance.

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

scholarly journals Board gender diversity and environmental, social and governance performance of US banks: moderating role of environmental, social and corporate governance controversies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Mashiyat Tasnia ◽  
Md Imtiaz Mostafiz
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Omitted Variables ◽  
Content Type ◽  
Dynamic Panel Regression ◽  
Board Gender Diversity

PurposeGender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social and governance (ESG) performance of the banks is still unaccounted for. Drawing on resource dependence and legitimacy theory, this study addresses this pressing research issue. Moreover, investigation of ESG controversies as a moderator paves the existing corporate governance research to the new avenues.Design/methodology/approachData were sourced from Refinitiv database on 37 US banks from the period of 2013 to 2017. This study employs static and dynamic panel regression models that include random effects, fixed effects and dynamic generalised method of moments (GMMs) to test the hypotheses. Furthermore, system GMM is used to reduce the issue of endogeneity, measurement error, omitted variables bias and bank-specific heterogeneity.FindingsWe identify a significant positive relationship between board gender diversity and the ESG performance of US banks. However, the result propounds non-significant moderating effect of ESG controversies on the board gender diversity–ESG performance nexus.Originality/valueLiterature on board gender diversity and ESG separately and predominantly explains firm/bank's financial performance. This study is one of the pioneering attempts to explain the role of board gender diversity on ESG performance. Although incremental, however, this study also contributes to the literature on ESG in the US context.

scholarly journals Corporate Governance and the Earnings Quality of Nigerian Firms

2020 ◽  
Vol 11 (5) ◽  
pp. 161
Author(s):  
Festus Oladipupo Olaoye ◽  
Ademola Adeniran Adewumi
Keyword(s):  
Corporate Governance ◽  
Comprehensive Evaluation ◽  
Earnings Quality ◽  
Gender Diversity ◽  
Annual Reports ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Board Size ◽  
Board Gender Diversity ◽  
The Impact

The focus of the study is to examine the impact of corporate governance on earnings quality in listed firms in Nigeria. The specific objective is to investigate the effect of board size, board independence and board gender diversity on earnings quality. This study was carried out with secondary data retrieved from corporate annual reports of the sampled companies and the data was analysed using panel regression on a sample of 37 quoted manufacturing companies for the period 2011-2017. On the overall, the result reveals that Board size, board independence and board gender diversity used for measuring corporate governance show significant impact on earnings quality. In addition, corporate governance variables appear to be quite sensitive to the measure of earnings quality used. Based on the findings, the study recommends the need for comprehensive evaluation of corporate governance systems of companies. The study recommends the need for more level of board independence. The diversity issue though is gaining momentum in corporate governance literature can still be regarded as not as dominant as compared to others especially as it relates to protecting shareholder rights and framing dividend policy. The significance of the variable nevertheless suggests that companies should thrive to achieve an appropriate diversity mix.

scholarly journals The effect of corporate governance on financial performance of rural banks in Ghana

2021 ◽  
Vol 2 (4) ◽  
pp. 305-319
Author(s):  
Alhassan Musah ◽  
Mavis Yaa Adutwumwaa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Secondary Data ◽  
Positive Association ◽  
Board Independence ◽  
Governance Structures ◽  
Board Size ◽  
Ceo Duality ◽  
Board Gender Diversity

Purpose: The study examined the influence of various corporate governance structures such as board size, board independence, board gender diversity and CEO duality on the financial performance of rural banks in Ghana. Research methodology: The study collected secondary data from the annual report of 30 rural banks for a 10-year period spanning 2010 to 2019. The data was coded into excel and exported into STATA where descriptive statistics, correlation analysis and regression analysis were adopted to answer the research questions. Results: The result shows that there was a positive but statistically insignificant association between CEO duality and ROA and ROE. The study further reveals a positive association between board size and ROA and ROE even though that of ROA was statistically insignificant. Also, board independence was found to be a significant determinant of rural bank financial performance In addition to the above, the study reported a negative association between gender diversity on the boards of the rural bank and ROA and ROE and both associations were statistically significant. Limitations: As a result of the lack of publicly available data on rural banks in Ghana, the study relied on only 30 out of the over 100 rural banks currently operating across the country. Contribution: The result of the study will help the Bank of Ghana and the ARB Apex Bank in their formulation of an appropriate corporate governance framework for rural banks in Ghana and enlighten managers of rural banks on corporate governance structures that enhance their financial performance in Ghana. Keywords: Corporate governance, Rural banks, Return on Assets, Return on Equity, Ghana

scholarly journals Determinants of Intelligent Energy Implementation Towards Firm Performance: A Conceptual Framework Moderated by Board Gender Diversity and Board Sustainability Committee

2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Dayana Mastura Baharudin ◽  
Maran Marimuthu
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Oil And Gas ◽  
Gender Diversity ◽  
Oil And Gas Industry ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Gender Diversity ◽  
Code Of Corporate Governance ◽  
The Impact

This study examines the impact of Intelligent Energy assessed by seven criteria to be followed by Malaysia’s listed companies (PLCs), regulated by Bursa Malaysia which are regulated by the Malaysian Corporate Governance Code 2017 (MCCG 2017)—30 percent Women Boards of Directors as well as by the existence of the Board Sustainability Committee which have not been endorsed by the MCCG 2017. In order to explore the reporting of the seven criteria of intelligent energy amongst Malaysian oil and gas public listed companies, in terms of gender-based and sustainability-based, it follows the methodology of descriptive statistics, regression analysis and content analysis derived from previous studies and the analysis of annual reports and integrated reports. This research provides a thorough analysis of present study breakthroughs in the worldwide oil and gas industry’s Integrated Operations. The 30 percent moderation factor Female Board members, as per the Malaysian Code of Corporate Governance 2017 (MCCG, 2017), would be assessed to see whether having an increased representation of women would encourage the implementation of the seven criteria of Intelligent Energy, as well as the moderation factor of the Board Sustainability Committee, which has not yet been made recommended practice by MCCG 2017, would be a driving force towards intelligent energy within the Malaysian oil and gas industry. Other than the Malaysian oil and gas sector, the Intelligent Energy scoring index might be used to other oil and gas PLCs in the ASEAN area, such as Vietnam and Myanmar, which have growing oil and gas resources.

scholarly journals The impact of corporate governance mechanisms on risk disclosure

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 292-307
Author(s):  
Aws AlHares ◽  
Osama M. Al-Hares
Keyword(s):  
Corporate Governance ◽  
Supervisory Board ◽  
Positive Association ◽  
Bank Risk ◽  
Corporate Boards ◽  
Risk Disclosure ◽  
Governance Mechanisms ◽  
Mena Countries ◽  
Corporate Governance Mechanisms ◽  
The Impact

The current study evaluated the influence of corporate governance mechanisms (CGM) from 130 banks from 13 Middle East and North Africa (MENA) countries. The goal was to analyze their risk disclosure practices from 2012-2019 and understand the impact of corporate governance (CG) on the level of bank risk disclosure. The current findings reveal a positive association between the level of bank-risk disclosure and 1) the presence of Sharia supervisory board; 2) the ownership of structure at the bank level; and 3) control of corruption at the country-level. The study has implications for developing, implementing, and enforcing governance standards at the corporate and national levels that are relevant to corporate boards, investors, governments, and regulatory authorities.

scholarly journals Does gender diversity on the board reduce agency cost? Evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Amin ◽  
Ramiz Ur Rehman ◽  
Rizwan Ali ◽  
Collins G. Ntim
Keyword(s):  
Gender Diversity ◽  
Business Environment ◽  
Agency Cost ◽  
Agency Conflicts ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
Female Directors ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to examine the effects of board gender diversity on agency costs in non-financial firms listed on the Pakistan Stock Exchange (PSX). Design/methodology/approach Multiple regression analysis is used to determine the impact of board gender diversity on agency cost. The research used panel data consisting of 2,062 firm-year observations of 226 non-financial firms listed on the PSX from 2008 to 2019 to test the proposed hypothesis. In addition, the Blau and the Shannon indices were used to checking for robustness. Findings The results indicate that female presence on the board significantly reduces the agency cost and, hence, mitigates the principal-agent conflict. Moreover, consistent with the critical mass theory, it was found that boards with three or more female directors have a stronger impact on reducing the agency cost, as compared to two or fewer female directors on the board. Research limitations/implications The sample was restricted to non-financial firms listed on the PSX only; therefore, the results reflect the attributes of Pakistan’s business environment. A similar analysis in the context of other countries may generate different results. Practical implications The findings imply that female directors play an important role in reducing agency conflicts between shareholders and managers by enhancing monitoring through effective governance mechanisms. The policymakers, therefore, should focus on female career development and encourage professional training programmes to generate a fair, competitive environment for senior female management. Originality/value This study attempts to fill the literature gap in that no similar study covers the non-financial firms’ listed firms in Pakistan. The paper supports the reforms made by the code of corporate governance by making the placement of female directors mandatory on Pakistani corporate boards. Overall, support is provided for the view that regulators should favour gender quotas regarding the composition of the board management team of listed firms to reduce agency conflicts and gain shareholder confidence.

Women directors and IPO underpricing: evidence from Indian markets

2015 ◽  
Vol 30 (3) ◽  
pp. 186-205 ◽  
Author(s):  
Rekha Handa ◽  
Balwinder Singh
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Women Directors ◽  
Ipo Underpricing ◽  
Content Type ◽  
Gender Balance ◽  
Female Directors ◽  
Gender Diverse

Purpose – This paper aims to fill the gap of the relatively under-researched impact of women directors on initial public offering (IPO) underpricing in developing countries. Gender diversity is an important emerging issue within the corporate governance literature. Recently, there has been a growing thrust on gender-diverse boards. However, their proportion on corporate boards is low worldwide. The paper examines the influence of women directors on the underpricing phenomenon pervasive in the IPO context. Design/methodology/approach – Gender diversity is an important emerging issue within the corporate governance literature. Recently, there has been a growing thrust on gender diverse boards. However, their proportion on corporate boards is low worldwide. The impact of women directors on IPO underpricing in developing countries remains relatively under-researched. This paper aims to fill this gap in research. The paper examines the influence of women directors on the underpricing phenomenon pervasive in the IPO context. Findings – The results suggest that the subscription ratio, listing delay and block holder ownership positively influence raw returns and market-adjusted excess returns. The proportion of women directors showed negative non-significant impact on both type of returns. We did not find evidence of the other explanatory variables included in the model. Research limitations/implications – The relatively low proportion of female directors may be the reason for some of the non-significant findings. Future research with a good gender balance on boards is likely to help generalising the findings. Other confounding factors also need to be included in the model for deeper explanations of the phenomenon. Practical implications – The study highlights the existence of a “glass ceiling” in Indian corporate settings, where women have to make a tough fight. This barrier must be removed to unleash the real talent of women as directors and see this talent reflected in returns. Social implications – The paper highlights both the need to better manage the gender balance in corporate board rooms and the need to incorporate women’s talents in corporate and investment decisions. Originality/value – The paper highlights the significant gender gap in IPO directorial positions in developing countries such as India. It explores female directors’ contributions in initial pricing performance, which remain unaddressed in this part of the world. Insights into this sensitive issue in an emerging economy such as India can provide important inputs.

Sign in / Sign up

Export Citation Format

Share Document